Sheet1
ANSWER-1
a) A= 500 200 350 WHERE A IS AS SALES MATRIX
400 300 100
250 425 50
100 150 350
200 175 225
B= 1
1
1
A*B= 1050 =D is a demand matrix
800
725
600
600
b) Q= DTXR
DT= 1050 800 725 600 600
R= 1 0 2 0
1 1 1 0
2 1 0 3
0 2 1 1
1 2 3 1
Q= 3900 3925 5300 3375
c) M=Q X P
Q= 3900 3925 5300 3375
P= 2 0 1 2
1 3 2 5
0 2 1 4
0 4 1 1
M= 11725 35875 20425 52000
Page 1
Sheet1
d)
TOTAL COST = CXMT
MT= 11725
35875
20425
52000
46475
C= 25 15 30
TOTAL COST= 2335800
Page 2
Sheet1
WHERE A IS AS SALES MATRIX
WHERE R IS MATRIX INDICATES THE NO. OF EACH COMPONENTS USED IN PRODUCING EACH PRODUCT
3
1
2
6
46475
Page 3
Sheet1
10 8
Page 4
Sheet1
DUCING EACH PRODUCT
Page 5
Sheet2
ANSWER-2
consumption sector
I) Production sector X Y Z DOMESTIC DEMAND
X 90 24 20 166
Y 60 96 20 64
Z 90 24 60 26
NEW TECHNOLOGY MATRIX
90/300 24/240 20/200
A= 60/300 96/240 20/200
90/300 24/240 60/200
II) Technology coefficient a23 that is 20/200 in the technology matrix means that sector Z is consuming 20 units of
III) If technology matrix would have been 0.00 then it means that Z sector has used its own output for consumption
IV) The first column of the table given above depicts how much units of output has been consumed by sector X from
a11=0.30 sector a uses 30% of its own
V) Sum of second rows
The second row of technology matrix describes how much sector Y demands from sector X&Z to produce one u
Sum of second rows = 0.2+0.4+0.1=0.7
This means that 70% of sector Y output is dependent on intermediate of x,y,z and 30% of production is from ex
sum of second column
2nd column represents how much x,y,z contribution in producing one unit of output in sector y
sum of second column =0.2+0.4+0.1=0.6
VI)
I= 1 0 0
0 1 0
0 0 1
A= 0.3 0.1 0.1
0.2 0.4 0.1
0.3 0.1 0.3
Page 6
Sheet2
I-A= 0.7 -0.1 -0.1
-0.2 0.6 -0.1
-0.3 -0.1 0.7
DET(I-A)= 0.25
As both the determinents and the principal diagonals are also positive so it posses hawkins simons test
VII) (I-A)-1 1.64 0.32 0.28
0.68 1.84 0.36
0.8 0.4 1.6
(I-A)-1 X D
1.64 0.32 0.28
0.68 1.84 0.36
0.8 0.4 1.6
150
200
250
380
560
600
VIII) balancing equation of each sector
x sector
x1= 1+a12*x2+a13*x3+d1
x1= 380
y sector
x2= 1+a22*x2+a23*x3+d2
x2= 560
z sector
x2= 1+a32*x2+a33*x3+de
x2= 600
Page 7
Sheet2
SUM
300
240
200
0.3 0.1 0.1
0.2 0.4 0.1
0.3 0.1 0.3
s that sector Z is consuming 20 units of output of sector Y inputs for pr
as used its own output for consumptions rather it has distributed all its unit of output to other sector and to domestic demand
put has been consumed by sector X from itself and from other sector y&z
mands from sector X&Z to produce one unit of output
x,y,z and 30% of production is from external
t of output in sector y
Page 8
Sheet2
so it posses hawkins simons test
Page 9
Sheet2
nd to domestic demand
Page 10
Sheet3
ANSWER-3
INVESTMENT -300000
BANK DEPOSITS – X
EQUITY SHARES-Y
UNIT TRUST-Z
x+y+z=300000 Eqn 1
0.2x-y+0.2z=0 Eqn 2
3x+y-2z=0 Eqn 3
A= 1 1 1
0.2 -1 0.2 X=
2 0 -3
B=
Determinant adjoint of matrix a 6
3 3 1.2 therefore values are
1 -5 0
2 2 -1.2 bank deposits – 15000
equity shares – 5000
formula X=1/determinant*adjt of A*B unit trust-10000
X= 15000
5000
10000
Page 11
Sheet3
X
Y
Z
300000
0
0
Page 12
Sheet4
ANSWER-4
GIVEN
LOAN 30000
N 6
i 0.6
INSTALMENTS
I 5000 PRESENT
II 15000 -3
III 4750 ?
SOLUTION
LHS 21148.81621
RHS 17594.28925
EQUATING LHS AND RHS 3554.526968 4750*(1.06)^-n
0.7483214669
Taking log both side
-0.1259117961 Nlog1.06 *log(1.06)=
n= 4.975597349
5 years
Page 13
Sheet4
-0.02530587
Page 14
Sheet5
ANSWER-5
GIVEN:
EFFECTIVE RATE- 10.38%
RATE-?
NO. OF COMP0UNDING - 4
SOLUTION
FORMULA {(Re+1)^n/m)-1}
10.00%
Page 15
Sheet6
ANSWER -6
GIVEN-
BORROWINGS- 1200000
RATE-9 YEARS
N-9
N(at the end of 4th yr) – 3
SOLUTION
LHS - 1200000
RHS - 3.463952228
R= 346425.10
Page 16
Sheet7
ANSWER-7
GIVEN--
Amount at the end of 2nd year-- 4686.64
Amount at the end of 4th year -- 5491.14
Money deposited ---- ?
Interest Rate--- ?
Compounding in a year --- 4
SOLUTION
PART -1 (FINDING INTEREST RATE )
Equation -1 p(1+I/4)^16 5491.14
Equation -2 p(1+I/4)^8 4686.64
Dividing the equations
(1+i/4)^8 1.17165816
Taking log both the sides
8log(1+i/4) 0.06880092159
log(1+i/4) 0.0086001152
taking antilog (1+i/4) 1.019999867
(I/4) 0.1999986715
i= 0.07999946862 Or 8%
Part-2 finding principle amt
putting the values of interest P(1+0.08/4)^8 4686.64
P(1.1716) 4686.64
P= 4000.2
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